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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. But, also by definition, that just can’t be the case.

Valuation 336
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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

For years, the most desirable exit strategy for startup companies was to go public through an initial public offering. Today, many startups are succumbing to the temptation to sell their companies early. Others are building their companies with the definitive intention of selling them. When is the best time to sell your company?

IPO 162
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The Pre-Seed FAQ

K9 Ventures

So, I took it upon myself as a challenge to put together the definitive “ Pre-Seed FAQ.” I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. Well, enter the Pre-Seed round, where the startup raises closer to $500K.

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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. These deal terms are simple but significant.

Finance 79
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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

« Thanks but No Thanks – Things to Avoid When Recruiting Co-founders Why is Cyber Squatter a Bad Word? Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” Which corporate entity do the founders own stock in?

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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

The Notes will be issued pursuant to a definitive Note Purchase Agreement containing customary covenants, representations and warranties of the Company. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing. Returning to our sample term sheet: Note Purchase Agreement.

Finance 79